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Legislative Auditor

Section: Business

Legislative Auditor Reports that State Hasn't Built One Katrina Cottage Despite $74.5 Million in Federal Funding
The Katrina Cottage Program began in 2006 when FEMA awarded Louisiana $74.5 million to build cottages as an alternative to the infamous FEMA trailers. After many unanswered questions, I requested an audit. The Report released today by the Legislative Auditor states that no Katrina cottages have been constructed as of January 16, 2009. That is unacceptable and I want answers.

The Legislative Auditor blames the delay of this program on several things, including a five month delay when the Governor moved the program from the La. Housing Finance Agency to the La. Recovery Authority. The Auditor also questions the selection of the developer without going through the state's public bid process.

That developer promised to build 500 cottages by the end of 2009. The size of the cottages will range from 612 to 1112 square feet. The estimated costs per square foot will be $158 to $195. That means these cottages will cost from $96,000 to more than $216,000 per cottage.

Not only is time running out, but why are the per cottage costs so exorbitant? Why was almost $2 million of the $74.5 million spent by January 16, 2009 without one cottage being completed? Why has over half of that $2 million dollars gone to the developer as part of its developer fee when we haven't built anything? There is also no excuse for why this is so slow.

I have requested another hearing before the Legislative Audit Advisory Council to answer these questions on March 17, now that we have the Auditor's report. Under federal regulations, if we don't use the funds for this program, we will lose them. We cannot afford this snail's pace to recovery or a loss of valuable resources, especially in this time of economic crisis. I have also requested members of our U.S. Congressional delegation to consider pursuing at the federal level either an extension, or an alternative use for these funds, so we can keep them here in Louisiana.

Habitat for Humanity has built over 210 houses since Hurricane Katrina. The State however hasn't put one roof over one person's head, despite having more than $74.5 million. Even Brad Pitt has built more houses than the State. We owe it to the people of Louisiana to reform this dismal performance.

Neil Abramson
State Representative, District 98
365 Canal Street, Suite 2740
New Orleans, Louisiana 70130
Ph (504)275-8051
Fax (504)568-3342

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